How much did Ganfeng put into AVZ's project in terms of binding OT deal? Zero. The link between valuations is tenuous at best. Why haven't any of the "binding" OT's actually put their money where their mouth is and contributed towards the project and commit financially to taking product? The answer to that question is likely, IMO only, a question of confidence in AVZ's ability to deliver an economical operation from the perspective of the OT's.
Again; AVZ needs to stop putting out fluff pieces and actually indicate to existing holders how this CR is going to deliver value for existing holders. Or are we still dreaming about interest free 80% debt that can also used to purchase further equity?
-How many weeks have passed since the 6 week ML approval pipeline commenced? -What other milestones are required to be hit for funding to be provided? -What is the commercial arrangement regarding the power provider? AVZ to fund somebody else's build and then pay for power or can AVZ own the power station?
Que the pump crew to send out meme's and lithium market sentiment without any speculations based in reality. Or are we still relying on P/E ratio's of 35 to turn this lithium exposure vehicle to demonstrate value past this MC?
This deposit has a tremendous opportunity to world class exposure to spodumene and lithium products; but the connection between Ganfeng's deal with $FFX and AVZ's future value is tenuous at best when one considers that Ganfeng didn't provide upfront payment to $AVZ to contribute to the project that was going to provide the product they needed in the future.
The pump crew will see this as a downramp, but most investors who know about AVZ are waiting for the company to demonstrate the value proposition for today's or near-term holders.
AVZ Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
